Good chance you each are in the 2017-15% tax bracket when the withholding occurs, but when you combine your incomes, you cross into the 2017-25% bracket. 2017 25% bracket starts at taxable $75,900 for MFJ. Everything above that number is at a marginal rate of 25%. Yes, you should probably change to ...

One Ping
Nice plan!
However, I dont believe you can make a qcd from a 401k, only from an ira.
You will have to nail the timing of roth conversions and the rollover of 401k for the
purpose of the qcd.
And you must be 70 1/2 to make a qcd, not allowed before 70 1/2.
Ace

Previous posts have a couple issues with regard to new (2018) tax rules .... 1) Real estate and income taxes are limited to $10,000 total. (I mean, lets say $10K each in mortgage interest and property taxes and $5,000 in state income taxes is just $25,000, only $1000 more than the standard one. And ...

JGR Section 179 affords the opportunity to fully depreciate / expense an asset in the year of acquisition. The limit is $510,000, but there are purchase limitations. This is covered in the instructions for form 4562 Depreciation. If you would have taken advantage of the low income year of 2017, you ...

The 1040 instructions pages 14-20 discuss filing status. Also in pub 501. You are either married (use MFJ or MFS) or unmarried (use Single or HOH). You can qualify to use HOH if you provided more than half of a qualifying child’s support. You should carefully review the above listed pages which disc...

Re-entering is inefficient.
Open the forms, select sch B, get the cursor on the list, then click the edit menu item,
and select sort the rows.
It will be alphabetic.
This usually works for any table in the forms.
Ace

You will want to review form 8606 and its instructions. If you contributed to tIRA and deducted it on each years respective returns, when you converted to roth, you needed to “re-tax” the amount. If you did not deduct the original contributions, you still need to report the contribution and conversi...

From irs.gov pub 334 page 24 Damages. You must include in gross income compensation you receive during the tax year as a result of any of the following injuries connected with your business. Patent infringement. Breach of contract or fiduciary duty. Antitrust injury. Economic injury. You may be enti...

As livesoft points out, you are “wasting” some child tax credits.
If I were you, I would redirect some of the tIRA contributions to Roth
to the extent you would use all the unused (800+/-) child tax credit.

Jehovasfitness +1 to the suggestion from neurosphere as to the process. But when you prepare the first joint return, open the what if worksheet, check the joint versus split box, and see what the result is. What if sheet allows you to move the deductions around, splitting them in a way that is most ...

Booradley Go to the Canadian tax dept website and search for the document/guide T4058. It is for non residents to determine if they need to file a Canadian income tax return. Based on your description, you are a non resident, you are not a resident or a deemed resident of Canada. There is also a pho...

booradley, I am not familiar with the Canadian income tax system, however I believe the response about not filing in Canada due to the treaty and your non residency is correct. The IRS system requires us to include worldwide income on our tax returns, so what you earned in Canada must be on your US ...

Smokey Regarding the coins, the most important element with collectible coins is condition. NEVER clean a coin and always handle it by the edges if it is not in a holder. PCGS has an excellent website to learn something about grade of coins, and value by grade. Every denomination is covered. I am an...

+1 to celias idea! Suspend her SS for 5 years ( to age 70), withdraw from ira to replace the SS plus convert the 25k you’re thinking of. 5 years later you haved reduced the ira by perhaps 50k times 5 years =250k, down to 275-300k +/-. Rmd goes from 20k+/- to 10k+/- and her SS gets the benefit of del...

Generally, executor fees and estate expenses are paid from the assets of the estate. This would generally include bond fees of the executor. I would guess a bank executor could be appointed, but it depends on the intestacy rules in that state. Perhaps one of the lawyers or law experts (Gill, bsteine...

Willqiao, Let me throw out that its possible to get in this situation when the two incomes are not fairly close together. When the incomes are similar amounts, the Married 0 plus a fixed additional amount will get closer to curing your underpayment issue. When the two incomes are far apart, the smal...

MP Turbo Tax does have a next year tax estimator, although I would guess it wont be really tuned in by a TT update until more defined rules for the new tax law are publicized. I have not purchased the 2017 version yet to check it out, but it is a check box on the “what-if” form, which lets you model...

Since you state reasonably good health, first ask is longevity in family history?
Then if so and you don’t need the cash flow, I would postpone taking SS, and
consider the pre SS years for making a few Roth conversions.

Ron... let me also add a Happy Birthday. Vested1 Since you turn 70.5 on Jan 2, you have all year to take your RMD, and you are correct in that any amount you withdraw in the prior year doesnt count toward this years RMD. That is also covered in the paragraph I cited in Pub 590b. Just make sure you u...

vested 1 [quote]I got conflicting advice on another thread here that gave me the wrong information, saying that if I followed this plan I would be paying 2 RMD's in one year. I read the law on the IRS website and for good measure verified it with my daughter, who is a CPA. I still see incorrect stat...

You should inquire if the employer has the capability of withholding for state B. You should also be able to modify the witholding in state A with the state version of a W4 and drastically reduce or eliminate state A witholding. Since you are in contiguous states, most states have some kind of recip...

Jojay I am an executor of an estate that among many things included a stamp collection. This collection was stored in and filled TWO refrigerators (airtight ! ). There was over 40 albums filled with stamps probably from the 20’s thru the 50’s, several boxes of postmarked loose stamps plus over 42,00...

You are limited to a maximum contribution of 18k in 2017 (+6k if 50+) to 401k, traditional or roth or combination of both. I believe 2018 max is increased to 18.5k. All employer match is deposited to your pretax traditional 401k. You will pay tax on that when you withdraw in retirement. Any contribu...

JGoneRiding, When I made my original post earlier in the thread, I thought the same as you... a prorata portion of the gain would be subject to tax. Further reading in pub 587 led me to agree with the OP ... that none of the gain is taxable EXCEPT for any recapture of depreciation as I subsequently ...

BV
The entry on 4797 comes from line 37 on the home sale worksheet.
Basically it is the total gain less the depreciation being recaptured, which is the amount of the gain
that is excluded. Make sure you do not have either box checked on line 19a of the home sale worksheet.
That should do it.
Ace

BV Digging deeper... you probably should review irs pub 523 sale of home and pub 587 business use of home. On p 16 of 587 it does imply you can exclude the entire gain on the sale since you do meet the 2 years use in 5 rule. As for the 4797, right click on the line on the form in TT and review the a...

BV I also find it significantly better to work thru the forms rather than the interview in TT. So there are 3 forms/worksheets you will want to open and review. If you click the forms icon (or menu item), all the forms in your return will be listed in the left side window. Asset wks, Home adj basis,...

Tashina, One more thing to consider.... if you go ahead and do the rollover at fidelity, BEFORE you execute that, inquire what fees you would see for selling in the 401k versus selling in the ira at fidelity. If selling in the 401k is less expensive, consider moving some to cash / money market befor...

Tashina, Yes you can continue to make tIRA to Roth conversions in future years. Making those conversions at little or zero tax cost are optimal. Depending on your overall position, you might convert the entire 401k/tIRA over the next several years and be totally Roth before your DH turns 70.5 and el...

KF,
Thanks for the clarification.... 72t appears to be usable regardless of age, whereas the pub 575 rule
is for those 55 and above and allows unequal amounts...
In any case, there are penalty escape routes.
Ace

Tashina, If you are trying to create income on your tax return, but dont need the cash, I think doing the rollover to an ira, and then converting the 10k to a roth accomplishes that. If you can do that in one step instead of two, even better. I would suggest if you do this, to do it at fidelity sinc...

My perception of the OP’s question is simply will MFS produce a lower tax bill than MFJ. When he was single he was in the 28% bracket with an effective rate of 17%, and probably withheld accordingly. When he married, the huge jump in combined income and the resulting tax bracket jump, his income now...

GG I will add in a +1 to the calculations suggested above. Given the age of the account, you might also contact the Investor Relations dept of the company. They might have some original purchase data plus some of the subsequent dividend reinvestment facts you could use as the starting point. Good Lu...

[quote=petulant post_id=3636863 time=1511822974 user_id=112943] Excel 2016 allows you to have spreadsheets open in multiple excel windows instead if being open inside a single excel window. That was a huge quality of life improvement for our analysts. If that was available on 2010, we didn’t know ho...

tmz +1 to everything marknyc indicated above. There is nothing preventing you/your wife from inquiring of the uncle/executor OR the accountant why they decided to amend the estate/trust 1041 and subsequently allocate the income of the trust/estate to the benficiaries. They should provide you a copy ...

I would inquire “from an educational standpoint”, what prompted the revision. However, since the amended 1041 and resulting K1’s are now filed, it behooves you to file an amended 1040 for the year 2015. It wouldn’t hurt to include a letter asking for waiver of any penalty / interest due to late issu...

st Your obligation at the end of the year in order to avoid any underpayment penalty/interest is 90% of the current year liability, or 100% (110 if above certain income level) of last years tax liability. ( I believe there is a modification when the tax filing status on the 1040 changes). It is perf...

csm I spent most of my career in the general accounting and fp&a areas. I would agree with everything MikeG indicated. However I would add a newer area in the accounting profession that to me seems like it would be quite interesting, is forensic accounting, the search for embezzlement, money launder...